Junior explorer rallies amid rising gold prices, another miner’s news
Galway Resources (TSX: V.GWY, Stock Forum) shares jumped 14 cents or 14% to $1.14 on Tuesday.
The company did not release news.
Galway’s property borders onto the Ventana Gold (TSX: T.VEN, Stock Forum) Las Mascota zone on the La Bodega gold project in Columbia. On Tuesday, Ventana announced a fresh discovery. While drilling at La Bodega, the company encountered 14 metres grading 14.18 grams per tonne of gold.
Following the announcement of the neighbouring discovery, cankillme asked whether Galway had similar geology. “Trending is one thing, but geologic composition is the most important and judging from GWY's work its the same?”
Writing that Galway’s property lies in the “sweet spot” near the Ventana discovery, Toasted2 reminded others that the Columbia property is not the company’s only asset. “People have got to remember that Galway is not a one trick pony! All people are looking at is the most recently added gold assets in Columbia, yet much of Galway's present value resides in its Moly-Tungsten property and Coal assets...IMO, Galway offers us exposure to Ventana's success with a great deal of insurance based on these other properties...a no brainer in my opinion. We are financed and ready to roll...The gold property is the blue-sky this company needs to really make it interesting...its got it all.”
Gold prices surged more than $29 to trade at $1083.30 after India’s central bank bought 200 tonnes of the precious metal from the International Monetary Fund.
The news release from Ventana mentions results from one hole, but posters to the Galway board were nonetheless talking about a major gold discovery. Egamer wrote: “Ventana's discovery today indicates this is a large gold system with mineralization controlled by fault zones.
“A review of geologic maps shows a series of NE faults in the region including La Baja fault that runs through Galway's ground and also properties controlled by Greystar and Caerus that have the largest land position in the region.”
Other posters were trying to sort out where the properties staked by the two companies would overlap the new discovery. Toasted2 posted a slide showing the regional geography. There is another parcel of land near the announced discovery, and several of the Bullboard posters mused about the owners of that parcel. “i have tried to look into it but can't seem to find an answer. would be nice to know, because they own a nice piece of land,” wrote cdcarss.
